Support

A cookie is a piece of data stored by your browser or device that helps websites like this one recognize return visitors. We use cookies to give you the best experience on BNA.com. Some cookies are also necessary for the technical operation of our website. If you continue browsing, you agree to this site’s use of cookies.

House Judiciary Committee Chairman Robert Goodlatte (R-Va.) said Nov. 1 that he’s
open to legislation that would strengthen the Federal Trade Commission’s ability to
police internet service providers under antitrust laws.

Goodlatte is opposed to an Obama-era regime adopted by the Federal Communications
Commission in 2015 that classified internet service providers as common carriers.
He said he would rather see the FTC play a lead role in overseeing the industry. The
FTC currently doesn’t have any jurisdiction over internet service providers.

Republican lawmakers and major telecom companies like AT&T Inc. and Verizon Communications
Inc. see the FCC rules as overly restrictive and potentially harmful to innovation.
They prefer an FTC approach that was in place before the FCC’s 2015 rules. Supporters
of FCC regulation say the FTC’s antitrust enforcement of ISPs isn’t an adequate replacement
for the current rules that they say are strong and clear. Ajit Pai, the current FCC
chairman, opposed the 2015 rules when he was a Republican commissioner. He is now
leading an effort to roll back the 2015 order that formed the basis of the agency’s
net neutrality rules. A vote is expected as soon as December.

Goodlatte indicated that legislation might satisfy both camps. “Ultimately, I am open
to the idea of amending the antitrust laws, if necessary, to account for the characteristics
of the internet,” he said at hearing convened by the panel’s antitrust subcommittee.
To date, communications law and antitrust law haven’t seen any major amendments that
specifically address the internet, which leaves regulators to interpret how existing
statutes apply in the digital age.

Part of Net Neutrality Bill?

The purpose of the House hearing was to determine what role for antitrust might play
in any “net neutrality” legislation that moves through Congress, a committee aide
told Bloomberg Law. The tech leaders in Congress have said for the last several years
that they want to amend communications law to note the presence of the internet. Any
antitrust provisions would fall under the Judiciary Committee’s jurisdiction, the
aide said. The biggest chunk of the bill would be considered by the Energy and Commerce
Committee.

Next steps are unclear. Antitrust Subcommittee Chairman Tom Marino (R-Pa.) said he
wants to continue listening to experts before making any judgments. “We need more
information,” he told Bloomberg Law after the hearing.

The FCC rules are particularly controversial because of the legal basis used to issue
them. The agency decided to reclassify internet access under the Communications Act
from an “information service” to a “common carrier service.” That move had the effect
of stripping the FTC of its authority over ISPs, since the FTC doesn’t oversee common
carrier activities.

Absent clear rules like those at the FCC, policing ISPs would be costly, difficult,
time-consuming, and hard to remedy, McSweeny said at the hearing.

“If the FTC were to detect a possibly anticompetitive practice, antitrust enforcement
requires not only detection, but thorough investigation, prosecution, a potentially
lengthy rule of reason analysis, and perhaps a multi-year appeals process,” she said.

To contact the reporter on this story: Alexei Alexis in Washington at
aalexis@bna.com

To contact the editor responsible for this story: Fawn Johnson at
fjohnson@bna.com

All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to books@bna.com.

Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)

Notify me when updates are available (No standing order will be created).

This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to research@bna.com.

Put me on standing order

Notify me when new releases are available (no standing order will be created)